Marathon Digital Holdings, a leading company in supporting and securing the Bitcoin ecosystem, has released its financial and operational results for the fourth quarter and fiscal year 2022, which ended December 31, 2022.
The company reported a net loss of $(686.7) million, or $(6.05) per share, during the fiscal year ended December 31, 2022, compared to a net loss of $(37.1) million, or $(0.37) per share, in the previous year ended December 31, 2021.
According to the report, the unfavorable variances during the year compared to the previous year were primarily due to a fourth-quarter impairment charge. This was related to the carrying value of mining rigs and advances to vendors of $332.9 million, declines in the carrying value of digital assets of $317.6 million, and a lower total margin of $150.4 million.
Additionally, this decline in margin was caused by lower bitcoin prices on revenues ($77.3 million), accelerated costs related to the previously reported exit from the Hardin facility ($54.3 million), and increased depreciation costs related to an increase in mining rigs in operation ($27.8 million).
Furthermore, there were impairments of $55.7 million related to the previously disclosed Compute North bankruptcy, legal reserves of $26.1 million, and increased interest expense of $13.4 million.
According to the report, the company’s fourth-quarter revenue was $41.3 million, representing a decline of 63% compared to the previous year. The decline in revenue was allegedly due to a decrease in the average bitcoin price and the number of bitcoins produced during the quarter.
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Source: Cryptocurrency - investing.com
